Ron Baron

Ron Baron

Last Update: 2014-05-15

Number of Stocks: 358
Number of New Stocks: 36

Total Value: $24,549 Mil
Q/Q Turnover: 6%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Ron Baron' s Profile & Performance

Profile

Ron Baron is the founder of Baron Capital Management. He is Co-Portfolio Manager of Baron Asset Fund and remains Portfolio Manager of the Growth and Partners Funds. Baron graduated from Bucknell University with a B.A. in Chemistry, and later attended George Washington University Law School in the evenings.

Web Page:http://www.baronfunds.com/

Investing Philosophy

Ron Baron invests primarily in small and mid-size growth companies. He likes companies with open-ended growth opportunities and defensible niches. He applies a bottom-up company research, invests for the long-term, and tries to purchase companies at what he believes are attractive prices. He invests in growth companies using a value-oriented purchase discipline. Baron ignores short-term market fluctuations when he believes the fundamental reasons for purchasing a company have not changed. He holds investments for longer than five years on average.

Total Holding History

Performance of Baron Partners Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201347.6331.5516.1
201216.415.41.0
2011-5.742.08-7.8
3-Year Cumulative62 (17.4%/year)55 (15.7%/year)7 (1.7%/year)
201031.5215.0616.5
200928.226.461.7
5-Year Cumulative173.1 (22.3%/year)125.5 (17.7%/year)47.6 (4.6%/year)
2008-46.67-37-9.7
200711.345.615.7
200621.5515.795.8
200514.374.919.5
200442.351230.3
10-Year Cumulative220.9 (12.4%/year)104.1 (7.4%/year)116.8 (5%/year)
200334.9528.76.2
2002-18.07-22.14.0
2001-15.71-11.9-3.8
20004.82-9.113.9
199918.4221-2.6
15-Year Cumulative271.2 (9.1%/year)98.3 (4.7%/year)172.9 (4.4%/year)
199811.6828.6-16.9
199749.8833.416.5
199616.1323-6.9
199536.9437.6-0.7
19944.761.33.5
20-Year Cumulative935.2 (12.4%/year)483.2 (9.2%/year)452 (3.2%/year)
199328.7810.118.7
199216.837.69.2

Top Ranked Articles

Ron Baron Suggests The Stock Market Could Be Setting Up for An Epic Run
Against my better judgement I caught a little bit of CNBC this morning. But to my surprise they had Ron Baron on for an extended interview. Imagine a financial network speaking to an investor who invests based on how the stock market values a business in relation to how that business is going to perform over the next five years! Read more...
Ron Baron on AECOM Technology, Carrizo Oil & Gas, LKQ (LKQX), Allegiant Travel and Macquarie Infrastructure Company
Ron Baron invests in small and mid-size growth companies. He likes companies with open-ended growth opportunities and defensible niches. These are the commentaries excerpted from his fund's quarterly report. Related companies: AECOM Technology (ACM), Carrizo Oil & Gas (CRZO), LKQ (LKQX), Allegiant Travel (ALGT) and Macquarie Infrastructure Company (MIC). Read more...
That Baron Conference
The Baron Funds’ yearly extravaganza on Oct. 24 had almost been cancelled this year--because the markets are so far down, because the Baron funds are so far down. Read more...
Ron Baron Likes Layne Christensen, Ritchie Brothers Auctioneers, Bankrate and China Nepstar
If you are looking for small cap growth companies, you should certainly look at what Ron Baron is buying. Baron invests in growth companies using a value-oriented purchase discipline, a lot like what Peter Lynch was doing. One issue with tracking Ron Baron was that at the time when we report, the stock prices have gone up. It is not the case this time. Read more...
Ron Baron on C.H. Robinson Worldwide, Inc., Chicago Mercantile Exchange, FactSet Research Systems Inc., SAIC, Inc.
Ron Baron likes to buy companies that have long term growth potential. He used to supply research reports to Peter Lynch. If you want someone who has Peter Lynch's style of investing, Ron Baron is the closest. These are the commentaries of his firm on C.H. Robinson Worldwide, Inc., Tiffany & Co., Chicago Mercantile Exchange, FactSet Research Systems Inc., SAIC, Inc. C.H. Robinson Worldwide, Inc. (CHRW) Read more...
» More Ron Baron Articles

Commentaries and Stories

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Ron Baron Comments on Guidewire Software Inc
Guidewire Software, Inc. (GWRE) shares declined as investors rotated from growth into value stocks and from small cap into larger cap stocks. The impact was particularly acute in stocks that had been strong recent performers, such as Guidewire, as investors abandoned winners in search of recent underperformers. Guidewire is the gold standard of property & casualty core system vendors, as evidenced by near-perfect retention rates, growing installed base, and accelerating adoption of its complete product suite. We maintain conviction in the stock. (Neal Rosenberg) More...

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Ron Baron Comments on Zillow Inc
Shares of Zillow, Inc. (Z), the leading online real estate site in the U.S., were up sharply in the second quarter, due, in part, to a favorable market reaction when a notable investor took a large position in the company in April. (Ashim Mehra) More...

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Ron Baron Comments on Concur Technologies Inc
Concur Technologies (CNQR), a provider of integrated travel and expense management software solutions, declined from $130 per share at the start of the year to $80 where we purchased shares. The rotation from growth companies gave us the opportunity to purchase the leading travel and expense management software provider with a multi-billion dollar opportunity at an attractive price. Concur remains in the early stages of its growth. It has an ability to expand its customers, products and geographies, while also providing suppliers with improved access to potential clients. More...

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Ron Baron Comments on Iridium Communications Inc
Iridium (IRDM), a satellite enabled voice and data communications company, had declined from over $9 per share in 2013 to $6.10 this year when we invested in that business. Iridium provides unique and valuable communications services to the Department of Defense. It also enables machine to machine communications (The Internet of Things) as well as enabling flight safety improvements and improved airline economics. More...

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Ron Baron Comments on Air Lease Corp
Air Lease Corp. (AL) purchases commercial aircraft to lease to airlines around the world. AL currently owns 196 modern aircraft, with 331 new airplanes (worth $23 billion) on order to satisfy U.S. and European carriers’ demand for more fuel-efficient models to replace their aging fleet and emerging markets’ need for more lift. Passenger traffic growth remains strong, up 6.2% (IATA data) through May, consistent with historical trends of outpacing GDP growth. AL’s revenues (+28% in the first quarter of 2014) and earnings per share (+50%) are growing impressively as its fleet builds. An investment grade rating and strengthening credit profile should enable AL to continue to get favorable financing in the capital markets and de-risk its balance sheet with more unsecured, fixed rate debt. AL has approximately 91% of leases placed through 2016 and is well capitalized for a long “runway” of profitable growth. (David Goldsmith) More...

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Ron Baron Comments on Athenahealth Inc
Shares of Athenahealth, Inc. (ATHN), a provider of cloud-based software-enabled business services for physicians and other healthcare providers, fell after reports of lower than expected first quarter revenues and earnings. A hedge fund manager also published a short thesis that the company’s long-term margin potential is structurally lower than what many investors believe. We exited the position during the quarter. (Neal Kaufman) More...

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Ron Baron Comments on Tesla Motors Inc
Tesla Motors Inc. (TSLA) designs, develops, manufactures and sells fully electric vehicles. Tesla reported what we considered to be strong results in the first quarter, but investor reaction was negative and we took the opportunity to add to our positions when the stock price dropped in early May. Tesla continues to make progress with battery cost reduction and regulatory approvals to sell its cars directly to consumers. Both of these developments were viewed positively toward quarter end. We view Tesla as a “once in a lifetime” disruptor to the car industry and believe this justifies its premium valuation. (Gilad Shany) More...

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Ron Baron Comments on Hyatt Hotels Corp
Shares of Hyatt Hotels Corp. (H), a global lodging company, increased in the second quarter after reporting strong earnings growth driven by an uptick in group business bookings. Groups comprise 45% of the company’s domestic bookings. Hyatt has also benefited from the sale of non-core assets, generating excess cash that Hyatt has used to accelerate share repurchases and purchase underperforming quality assets in new locations. We think Hyatt’s growth in units and increased revenue per available room (RevPAR) are not yet reflected in its share price. (David Baron) More...

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Ron Baron Comments on Trex Co Inc
Trex Company, Inc. (TREX) is the largest and lowest cost manufacturer of composite decking and railing in the U.S. – a category Trex pioneered in the 1990s – with 40% market share. 90% of sales stem from repair and replacement and 10% from new construction. Management, whom we respect, estimates that there are 40 million wood decks in the U.S. that will eventually rot, a significant portion of which will be replaced with composite decks. Composite represents approximately 11% of the total industry, up from 1% in 1999, with the remainder mostly wood. Consumers have opted to convert from wood to composite because composite looks similar, but performs better (doesn’t stain, rot or splinter). Trex is well positioned to benefit from this replacement demand. In addition, Trex has been growing its market share through new products and distribution wins and by expanding internationally. Trex also has recycling expertise, which it may apply to new industries in the future. (David Kirshenbaum) More...

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Ron Baron Comments on Badger Daylighting Ltd
We increased our position in Badger Daylighting Ltd. (TSX:BAD), a provider of custom-made trucks that use pressurized water and powerful vacuums to excavate in areas with buried pipes and cables. These “hydrovac” trucks are much safer than mechanical equipment and more efficient than manual digging. Hydrovac truck demand is growing rapidly, as oil and gas companies use them to build new wells and pipelines, and as utility companies increasingly use them to maintain underground infrastructure. Badger is meeting this demand by building more trucks and adding more service locations in the U.S. and Canada. With over 800 trucks and 110 locations, Badger is by far the largest provider of hydrovacs in North America, competing mostly against local mom and pops. This size advantage and the company’s manufacturing capabilities allow Badger to enjoy economies of scale and lower operating costs. Given the strong tailwinds of capital investment by the energy and utility industries, along with increasing safety pressures around accessing and maintaining existing infrastructure, we believe demand for Badger’s services should continue More...

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Ron Baron Comments on Masonite International Corp
We initiated a new position during the second quarter in Masonite International Corp (DOOR). Masonite is a leading, vertically-integrated manufacturer of interior and exterior doors. In 2013, Masonite sold 32 million doors to over 7,000 customers in 80 countries. Sales are split 58% U.S., 16% Canada, and 26% rest of world. Masonite has dominant market positions in its product categories, particularly in North America, and is poised to benefit from an improvement in residential and non-residential construction activity off of depressed levels. Additionally, the doors industry has consolidated recently for certain product categories, improving Masonite’s ability to raise prices, even though capacity is underutilized. The management team is impressive and has inculcated a culture of operational discipline and innovation. We believe that EBITDA can triple as construction levels normalize and pricing firms. Accretive automation investments and acquisitions should be additive to growth. (David Kirshenbaum) More...

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Ron Baron Comments on CoStar Group Inc
After doubling in 2013, real estate information and marketing services provider CoStar Group, Inc. (CSGP) gave back gains in the second quarter. CoStar shares were negatively impacted by sudden and significant multiple compression in high growth, highly valued stocks, which sold off acutely early in the quarter. CoStar also completed an equity offering in the quarter, which we expect will be used to finance accretive M&A over the next six months. We continue to maintain our conviction in CoStar. (Neal Rosenberg) More...

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Ron Baron Comments on Generac Holdings Inc
Shares of Generac Holdings, Inc. (GNRC), a manufacturer of stand-by generators, fell in the second quarter after the company reported first quarter earnings below Street expectations. The company cited difficult winter weather as a reason sales missed expectations and reiterated full year guidance, despite the quarterly miss. Weather created strong demand for Generac generators, but delayed timely installations. We continue to like Generac, based on its dominant market share in an underpenetrated market. In addition, we believe management will be successful in growing the company into a diversified, global back-up power generation business. (Rebecca Ellin) More...

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Ron Baron Comments on Dick's Sporting Goods Inc
Shares of Dick’s Sporting Goods, Inc. (DKS), a sporting goods retailer, declined in the second quarter. The company reported quarterly earnings that were modestly below Street expectations and reduced guidance for the rest of the year. The sales shortfall was concentrated in the hunting and golf categories, while other higher margin product segments had sales growth exceeding industry averages. We believe the hunting and golf issues are temporary and do not alter our long-term investment thesis. (Michael Baron) More...

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Ron Baron Comments on Community Health Systems Inc
Shares of hospital company Community Health Systems, Inc. (CYH) rose in the second quarter. The Affordable Care Act is already resulting in a reduction in uninsured hospital admissions, and the governors of several key states are pursuing Medicaid expansion. Over time, we think Community should benefit from synergies from its acquisition of Health Management Associates, health care reform-driven changes, aging demographics, and a shift in reimbursement to favor those that can deliver high quality patient outcomes at lower cost. (Susan Robbins) More...

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Ron Baron Comments on Targa Resources Corp
Finally, it was announced that Energy Transfer Partners L.P. has expressed an interest in acquiring Targa Resources Corp. (TRGP), an energy midstream MLP business that owns storage, pipelines, gathering and processing facilities in the Balkans, Gulf Coast and Permian Basin. Energy Transfer has interests in those areas that would be complemented by Targa’s properties. Energy Transfer acquired Baron Growth Fund’s investment in Southern Union (also held in several other Baron funds) in 2011. We had been an investor in Southern Union since 1995 and made about eight times our money from that initial investment, and about three times our money overall, when that business was acquired. We have owned Targa since its IPO in December 2010 and have so far made more than six times our money from that initial investment. One more thing, Energy Transfer has been an even better investment than the companies they acquired! Unfortunately, for us, we so far missed that one. More...

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Ron Baron Comments on Valmont Industries Inc
I nearly always find something relevant and memorable in management meetings I attend, whether in our office or theirs. A recent visit by Mogens Bay, Chairman and CEO of Valmont (VMI), a diversified industrial company, is a case in point. We have had a modest sized investment in Valmont since 2009. We have since about doubled our money. More...

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Ron Baron Second Quarter 2014 Shareholder Letter
“This company could survive for a long time without its CEO. It couldn’t last through lunchtime without its welders.” Mogens Bay. Chairman and CEO. Valmont. May 2014. More...

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Baron Funds Comments on Amber Road Inc
Amber Road, Inc. (AMBR), is in the Internet software & services sub-industry, where we have found a number of companies we like. We participated in Amber Road’s IPO in March 2014 and added to our position in May 2014. The company has a unique product: a proprietary database developed over the past decade that tracks the complex issues involved in international trade, including worldwide import/export controls, tariff rules, restricted party lists, and sailing schedules, in over 20 languages. It has a high quality customer base and subscription-based revenue model that provides transparency into the company’s financial health. More...

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Baron Funds Comments on Revance Therapeutics Inc
Revance Therapeutics, Inc. (RVNC), exemplifies the Fund’s investments in biotechnology. Revance’s initial product is a gel that the company is positioning as the first FDA-approved non-injectable form of Botox. We think many patients and doctors will prefer the gel over injectable Botox. In addition, its market is large and growing, especially internationally. (Allergan, which derives 80% of its revenue from sales of Botox, recently rejected a $53 billion takeover offer.) Product launch is scheduled for 2017 or earlier, and we expect that over time, Revance will capture 20-25% of the market. More...

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User Comments

Francesca turner
ReplyFrancesca turner - 4 months ago
why is illumina performing so badly and do you still own it?

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